Top Reasons Franchise District Managers Fail and How to Fix Them
Aug 05, 2025
If you have ever wondered why your District Managers fail at producing the results you expect of them, this blog post is for you.
Often, franchisees promote individuals into the District Manager position, either from an internal employee or an external hire, without clearly establishing the responsibilities and routines they need to follow to be effective in their role.
Without the right guidance, they get stuck at being super general managers, or super GMs as we call them, which is usually their previous role as Unit Managers, and the one they feel most comfortable in. However, that does not work when it comes to the District Manager position.
I remember when I was a Director of Operations, overseeing over 60 units across three states and supervising seven District Managers. Whenever we had a District Manager open position, we promoted someone who was a great Unit Manager, thinking they were going to be able to excel as a District Manager because of their previous experience and results. But that was not the case.
Even though we were a global brand, at the time, we did not have the tools or the resources to prepare that person to transition to that position. As a result, they struggled, overworked, eventually burned out, and had to go back to being a Unit Manager because they couldn't cut it as a District Manager.
That experience opened my eyes to how different it is to be a Unit Manager versus a District Manager. It also made me realize how crucial it is for Franchisees to ensure that those men and women are properly trained before promoting them, or at least train them quickly afterward, so they have the knowledge, tools, and resources to succeed and meet the results and expectations of the role.
Why are your District Managers not delivering? What’s holding them back? In this blog post, I'll share the most common reasons franchise District Managers fail at their position and what you can do to fix their poor performance.
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Lack of Leadership Skills
The first reason why District Managers fail at their job is that they don’t know how to inspire and motivate the team.
Unit Managers spend their time at their units, working shoulder-to-shoulder and side-by-side with their team. They can guide, coach, and inspire them directly and in person, as well as train and supervise them constantly because they are together all the time.
District Managers, however, require a next level of leadership. Think about it! They can only spend a little time in the unit, and they have to motivate and inspire the team not just when they are there, but also when they are not there. This has to happen across multiple units and distances.
Acquiring those leadership skills to make that happen requires special training.
Lack of Time Management
The second reason why District Managers underperform in franchising is not knowing how to manage their time. This is critical when you consider that they dictate 100% of what they do!
That doesn’t happen for Unit Managers, where 80% of what they do is dictated by the day-to-day operations. That includes: opening the unit, welcoming the employees, setting everything up to receive and take care of the customers, supervising the employees, doing schedules, placing product orders, cleaning the unit, closing it, and then going home. Only about 20% of the Unit Manager’s activities are dictated by themselves.
- District Managers, however, determine 100% of what they do, when they do it, why they do it, how they do it, and the outcomes they will produce.
They might work really hard, but without excellent time management skills, they are probably going to waste a lot of time and won’t get the results that they need and deserve for the work that they are putting in.
And therefore, time management is a tremendous skill that District Managers must learn to be successful in that position.
Don’t miss: Traction vs. Distraction: Productivity Hacks for Busy Franchisees
Not Differentiating Between Urgent and Important
The third most common reason franchise District Managers fail is that they do not have the ability to discern between what's urgent and what's important.
- Urgent are the things that you must address because they are going to derail your business.
- Important are the things that are going to bring the business forward.
If your multi-unit leaders don't have the ability to distinguish one from the other, can’t tell what to address first, or where their focus should be, they are going to spend a lot of time firefighting and addressing urgent things, instead of moving the business forward.
You can fix poor District Manager performance by training them on how to distinguish between what is urgent and what is important.
Once they have that clarity, they will be able to manage urgent issues as they arise to prevent damage to the business, and then quickly shift their focus to important tasks, understanding that those are what drive the business forward.
No Routines or Habits
Another reason why District Managers fail is that they don’t have clarity on which actions, routines, or habits they should focus on. This leads them to do different things each day—one day some actions, the next day something else, and then another thing the following day.
That inconsistency and lack of a steady routine of doing the right things every day prevent them from achieving the results they are supposed to deliver.
You can fix this problem by providing clear guidance on the habits and routines you expect them to follow and explaining how these actions positively impact the business.
- If they know what to do every day, week, month, and quarter, and they execute that consistently, they will be able to bring the business to the next level and get the results that you want as a Franchisee.
It will also make them do more in less time, since they're focusing on the right things every single day.
Creating those routines and habits throughout your organization will also bring the team forward and produce consistent results.
Busy, but Not Effective
Another mistake that makes District Managers underperform in franchising is that they're always very busy, but they're not effective or actually producing results.
One of the things I learned a long time ago from a very effective CEO was to never confuse activity with results. There is a very big distinction.
If your multi-unit leaders are not really focused on the things that are going to produce results in your organization, you need to realign them and clearly explain what they should be focusing on.
You must also be clear on what are the key performance indicators and the areas that make the most difference in the business.
If they understand this, they can truly be effective because they will focus on the right things, even if they are busy.
Keep learning: Game On: Using Metrics to Elevate Your Franchise
Lack of Business Acumen
District Managers can also fail at the job because they do not have the necessary business acumen to understand the business and how their everyday actions have an impact on the bottom line.
There are too many men and women in that position who have never read a Profit and Loss Statement, not to mention analyze it or use it as a tool to make the right business decisions. But District Managers represent the business owner, and as such, they must understand the business's financials.
That way, the results of those financials will drive their daily decisions, actions, and focus.
- Being able to understand that what they do every day impacts the financial health of the business is a crucial skill that District Managers must have.
Obviously, the answer to fixing that lack of business acumen is to train them in business financials.
Share with them the financials of the units they supervise so they can see the impact of their daily actions. This will help them identify the right priorities, develop good habits, manage their time effectively, and lead the team in the right direction, so that they can meet your expectations, feel successful, and produce the results you want and deserve..
In case you missed it: Should You Share Your P&Ls with Leaders?
Poor Leadership from the Direct Supervisor
One more reason why District Managers sometimes fail is that their direct supervisor isn't quite sure of what they should do, what their responsibilities are, or what their role implies.
Having a direct supervisor who clearly understands the District Manager’s role and can follow up on their activities, routines, and habits is crucial for your franchise's success. So, whether you, as a Franchisee, are overseeing your District Managers or have someone else doing it, you need to be clear about this to strengthen your multi-unit franchise enterprise.
If you don't know what a District Manager does, you don’t have the clarity of the skills and responsibilities they should have, the expectations of their role, or what they need to be successful, and you don't have a way to train them, you might want to explore LEAD, our Multi-Unit Leadership Certification Program.
This 10-week training program has been designed exactly for people like you. We provide the men and women in District Manager or Multi-Unit Leader positions with the knowledge, tools, and resources they need to be successful and thrive.
As part of the program, their direct supervisor has full access to all of the knowledge. That way, they can accompany their leader and be in alignment with the training, the tools, and the resources we provide, so that they can work together and achieve the goals you want and deserve.
To learn more about the program, go to https://afalead.com/ or register for our next free information session below. We have one each quarter, so be sure to join us in the next one!
Reflections:
- How would you rate your District Manager’s leadership skills?
- Are your District Managers really too busy, or are they wasting time on things that are not important?
- Do your District Managers have the necessary business acumen to move the business forward?
- How much does the direct supervisor understand the role, responsibilities, and routines of the District Manager?
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